THE new container haulage tariff for deliveries to Northport and Westport implemented on Nov 1 is illegal, the Federation of Malaysian Manufacturers (FMM) said.

FMM logistics committee chairman Mohd Radwan Alami said they do not have the right to amend the rates that have been established by the Government.

He said the tariff was fixed by the Commercial Vehicles Licensing Board (CVLB) and they are the authority for any revision of the rates.

“Neither Association of Malaysian Hauliers (AMH) nor Container Hauliers Association of Malaysia (CHAM) could alter the charges,” he said, adding that if the associations wanted a revision, they should seek approval from the government.

Last week, Star Maritime reported that AMH and CHAM in a joint notice to the logistics fraternity said the new rates were fully justified and were within the tariff gazetted.

The operators are charging RM48 for a 20-foot container delivered to any location within Selangor and RM96 for a 40-foot box destined for all other locations.

Prior to the revision, the hauliers were collecting RM174 for a 20-foot container and RM348 for a 40-foot box delivery to any location within Selangor.

Mohd Radwan said the haulage companies were not supposed to directly inform their clients through such a circular.

“Any communication regarding the tariff should be referred to the government because they hold the authority to decide on any changes,” he said. He said in a transport operators meeting with the Ministry of Transport on Oct 18, CVLB was made aware that the haulage associations wanted an increase in the tariff.

“But the ministry is yet to approve the suggestion and FMM too has not received any clarification on the calculation of the increase.“We have written a complaint letter to the ministry saying that we will not comply with such an increase until further notification from the government.”

Mohd Radwan said FMM disagrees that the tariff revision was due to oil price increase because the government has subsidise to absorb the hike and not to pass it on to the transport industry. He said the Prime Minister had announced there would be no increase in transport charges in the country until the end of this year and the industry should follow the advise.

Mohd Radwan said FMM had recommended that the haulage industry work on liberalising the sector and free it from any tariff structure or ceiling.“The liberalisation works on willing buyer and willing seller basis and the ministry is considering our proposal,” he said.

He said FMM supported a free market idea as it would be based on a supply and demand matter thus nobody can complain on the charges.“The free market will also create a healthy competition among the players to deliver better quality services to their clients.

“Such a move will give flexibility for hauliers to use their prime movers for both lorries and haulage.“This would increase productivity and prevent wastage of assets,” he said.He said the liberalisation of the haulage sector would allow free issuance of haulage licences.

“We are advising all our members that they will be free to get licences and operate their own haulage transport of their goods in near future,” he said.

The Star, 7.11.2005